Existing customers
A couple sitting on a couch looking at a tablet together

Universal Life Insurance

Learn more about universal life insurance, our effective way to maximize the amount that you leave to your loved ones when you pass away and help offset the impact of taxes.

Contact us

What is Universal Life Insurance?

Universal life insurance is permanent life insurance coupled with an investment component. With this type of policy, you’re able to see what portion of your premiums are used to cover the cost for your insurance coverage and how much remains to be invested in a tax-deferred investment account that’s included in the policy.

Who can benefit from universal life insurance?

Universal life insurance can be ideal if you’re looking for permanent life insurance and want a source of funds for your heirs to:

  • Cover your final expenses

  • Replace your lost future income, in case of your death

  • Offset the taxes which will become payable on your RRSP when you die

  • Minimize the impact of taxes on other taxable assets in your estate – such as the capital gains tax on the increase in value of your cottage

  • Maximize the transfer of your wealth to your heirs in a tax efficient way

  • Leave a financial gift in your name to your favourite charity

Benefits of universal life insurance

Universal life insurance combines permanent life insurance protection with tax-deferred investment accounts in one plan:

  • Wealth Dimensions

    Our universal life insurance plan for individuals or business owners looking to take full advantage of tax-deferred investment options with tax-deferred accumulation on universal life.

  • Optional riders

    Wealth Dimensions offers a wide variety of supplementary life and critical illness insurance coverages (called “riders”) such as:

    • Term Insurance Rider Life insurance coverage for a given number of years (e.g. 10, 15, 20, 25 or 30 years)

    • Accidental Death Rider Life insurance coverage which pays a benefit if you die because of an accident

    • Waiver of Premium Covers your premium payments or some other specified amount in case you become disabled

    • Children’s Term Insurance Rider Provides term life insurance for your children

    • Critical Illness Rider Provides a lump-sum payment to you if you’re diagnosed with a covered critical illness

    • Business Guaranteed Insurability Option Ideal for business owners who want to lock in their ability to purchase additional life insurance protection in the future

  • BMO Insurance Health Advocate

    With universal life insurance plans from BMO Insurance, you will also have access to the BMO Insurance Health Advocate™ Plan, an industry leading, comprehensive assistance services– at no additional cost.

  • Empathy

    A complimentary loss support service that offers personalized, comprehensive, on-demand support for challenges your beneficiaries may face. Learn more about Empathy in this video or download our client brochure.

How to apply for universal life insurance

Follow our simple application process to secure universal life insurance.

  1. Consult

    Contact an insurance advisor to review goals and set your plan.

  2. Get a quote

    Speak to an insurance advisor about coverage that’s right for you.

  3. Apply

    Complete your application with your advisor to obtain coverage.

Frequently asked questions about Universal Life Insurance

  • Universal life insurance is a combined insurance/investment solution where your premiums go into the investment accounts you select in your policy. It is flexibly structured to meet a range of insurance/investment scenarios. Whole life insurance provides life-long protection. You pay a fixed premium that will never increase, with some plans providing a guaranteed cash value. Consult your Insurance Advisor to determine what’s right for you.

  • The cash value is the investment portion of a universal life policy. After the cost of insurance is covered, part of each premium goes into the tax-deferred investment accounts you select, and can grow over time.

  • You can generally access the accumulated cash value during your lifetime — for example through a withdrawal or a policy loan — subject to the terms of your policy. Your advisor can walk you through the options and any tax implications.

  • Growth in the investment accounts is tax-deferred, the death benefit is generally paid tax-free to your beneficiaries, and the policy can help offset the taxes payable on other assets in your estate.

  • It can be. Because the cash value grows on a tax-deferred basis, some people use universal life to complement registered plans (like RRSPs) once those are maximized. Speak to an advisor about whether it fits your retirement strategy.

Learning Center

Browse insurance insights

Have Questions?